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Attracting and Retaining the Workforce of the Future

Heatherly Dukes

President, Technical Services Group

Sept. 13, 2018

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Aging EM Nuclear Workforce

By 2020, 25% of the American Workforce will be >55 years

• aka the Silver Tsunami

• Birth rate has significantly declined - shortage of available new workforce

The DOE Complex Average Age is ~50

• >30% EM workforce is over 55 years of age

• NNSA goes to >38% retirement eligible in 2023 (up from 17% in 2018)

Expected significant turnover rate in next few years

• Retirement of large sector of employees

• Higher turnover rates in younger generations than traditionally seen with Baby Boomers

Hiring issue exacerbated since many DOE sites’ area have an overall

decreasing workforce population

Source: Energy.gov; various site websites; Wikipedia

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Example DOE and BWXT Site Workforce Statistics

Site Age % over 55 years

Age % under 35 years

Turnover Rate for <30 Years

Old

Avg Site Age (yrs)

Portsmouth 35% 17% ~8% 49

Paducah 32% 8% 0% 50

West Valley 52% 6% 0% 51

LANL - Cleanup 31% 17% N/A 40

INL 24% N/A ~6% 47

SRS - SRR 35% 24% ~6% 49

BWXT 25% 22% 4.6% 45

Source: Site HR managers

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Generation Z/Millennials Facts versus Previous

Generations

Millennials will be 50% of the workforce in the next few years

58% of millennials leave their job within three years

Technology is the catalyst for the rapidity with which generations

now evolve - politics or sociology don’t move fast enough

Very short attention spans and need multiple different things to do

This is the video generation - training should be video based vs

reading

Incredible collaborative powers that companies need to learn to

harness

Source: Technology the Catalyst for Generational Differences, National Association of Colleges and Employers

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Company Attributes that Attract Gen Z/Millennials

Places a high value on corporate social responsibility (CSR)• 64% of millennials won’t work for a company that doesn't have strong

CSR commitmentso 75% willing to take a pay cut to work for a company with strong CSR

• Very interested in paid volunteerism

Provides career movement and experimentation

Helps with Finances• Student loan repayments (most highly rated but only ~4% of

companies offer this)

• Free financial planning services

• Onsite healthy food at a discount or free, etc

Provides Lifestyle Benefits – employer contributions to allow personal growth

Diversity – Gen Z population is much more diverse - wants to work for companies with diversity

Sources: Society for Human Resource Management, July 2018; Millennial Employee Engagement Study by Cone Communications

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Company Attributes that Attract Gen Z/Millennials:

Diversity

Bureau of Labor Statistics: by 2020 more women are

expected to be working than men

By 2043 there will be no racial or ethnic majority in the U.S.

• By 2028, racial and ethnic minorities will be the majority of young

adults 18-29 years old

Diversity affects the bottom line:

• Review of Fortune 500 companies with women/diversity on their

boards had a higher return on equity by at least 53%, superior in

sales by at least 42%, and higher ROI by 66%.

• Groups of diverse problem solvers outperformed groups of high-

ability problem solvers

Sources: http://www.anneloehr.com/2016/04/29/attracting-retaining-diverse-talent-strategic-priority; Study by Lu Hong and Scott E. Page; Daily News Dec 12, 2012, Whites No Longer a Majority in United States by 2043;

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Why Diversity Matters

A 2015 and 2017 business case for inclusion and diversity (I&D) showed a

strong correlation between diversity and profitability (>1000 companies in 12

countries)

Companies with the most ethnically/culturally diverse boards worldwide are

43% more likely to experience higher profits.

Companies in the top-quartile for gender diversity on executive teams were

21% more likely to outperform on profitability and 27% more likely to have

superior value creation.

Companies in the top-quartile for ethnic/cultural diversity on executive teams

were 33% more likely to have industry-leading profitability.

Sources: McKinsey&Company: Why Diversity Matters, 2015; Delivering Through Diversity , January 2018; Sylvia Ann Hewlett, Melinda Marshall, and Laura Sherbin, “How Diversity Can Drive Innovation,” Harvard Business Review, December 2013.

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More Recruiting/Retaining Workforce

Facts and Examples

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Recruiting Professionals – Top 10 List for 2017 Grads

How does your company compare?

BenefitConsidered Important by

StudentsOffered by Employers

Company-matched 401(k) plan 67.9% 93.7%

Dental insurance 62.3% 93.7%

Guaranteed annual salary increases

60.0% 13.8%

100% employer-paid medical insurance

57.9% 7.5%

Life insurance 57.1% 93.7%

Tuition reimbursement for advanced education

57.0% 80.5%

“Family-friendly” benefits 56.8% 80.5%

2+ weeks of vacation in the first year of work

40.8% 54.7%

Bonus/commission plan 40.6% 66.7%

“Flextime” policy 38.6% 50.3%

Source: Class of 2017 Student Survey Report, National Association of Colleges and Employers

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Recruiting

Professionals

Showcase your company’s technologies

Intern programs – particularly with nearby universities• > 3/4 of students that were “extremely satisfied” with their

internship/co-op experience are likely to accept an offer

• Students rated internships high when:

o Had meaningful work duties

o Fostered their personal growth

o Interactive/collaborative work environment

• Maintain ties when interns return to school - maintains their loyalty/interest

Workers/Crafts

Create Partnerships with Training and Educational Organizations

Source: Class of 2017 Student Survey Report, National Association of Colleges and Employers

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Examples of Workforce Recruitment and Retention Innovations

Intern Program Successes:

BWXT hires ~48% of its interns with an 80% retention rate

Paducah hires ~10% of its interns with none leaving to date

INL hires ~10% of its interns (avg is 20% for multi-year interns)

SRS (Liquid Waste) hires ~11% of its interns

Portsmouth hires ~10% of its interns

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Examples of Workforce Recruitment and Retention Innovations

Partnerships with Training and Educational Organizations:

Portsmouth – Worked with union to create an apprenticeship for RadCon

technicians using DOE core training program and site instrumentation

SRS – Utilized Aiken Technical College for Operator, Maintenance, and

RadCon development programs

INL – Lab sharing with University

LANL Cleanup – partnering with Northern New Mexico College to establish

an apprenticeship program modeled after Newport News’ Apprentice School

in Virginia

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Retaining the New Workforce

Formalize a policy on Corporate Social Responsibility:

• Millennials like companies that reduce their environmental footprint, engage their

employees in community volunteer efforts and donate money to good causes.

Millennials want to be asked for their input.

Make sure there is a good communication system in place – millennials

want to know what differences they are making - social media is best

mechanism to communicate with this group.

55% of employees want their company to offer more flexible work

options to help create work/life balance

~70% of employees today have extensive student loan debts

• ~ 90% of millennials would commit to an employer for at least five years if they

received help repaying student loans.

Source: http://www.governing.com/equipt/attracting-and-retaining-a-younger-workforce.html; http://engineeringdimensions.peo.on.ca/index.php/2018/03/15/attracting-and-retaining-the-workforce-of-the-future/; 2017 Mercer OSPE National Engineering Compensation Survey; https://www.ameritasinsight.com/employee-benefits/employee-talent-war

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Examples of Industry Innovations

Abbott Laboratories

Offers a hybrid student loan repayment/retirement savings benefit

• IRS recent ruling allows a company to match up to 5% for a non-taxed

401K contribution for an employee’s student loan repayment that is >2% of

the employee’s salary

BWXT

Incentives all workforce (non-union) – bonus based on meeting

corporate/project financial and safety goals

Uses existing Eastman Kodak partnership with college for Chemical

Process Operations certification; utilizes numerous college

certification programs for NDE/NDT capabilities

Targets recruits using:

• Social Media – Facebook, Twitter, LinkedIn, Glassdoor

• Geo-fencing utilizing Google & Facebook for target marketingSources: https://www.hrdive.com/news/irs-approves-employers-401k-incentive-for-student-loan-payments/530877/

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Examples of Workforce Recruitment and Retention

Innovations: Savannah River Site

Innovations to attract a new workforce:

Offers 4 weeks of PTO/Vacation for new hires (1 week more than industry)

Texting with college recruits prospects instead of calling them

Re-designed recruiting handouts to highlight pictures of diverse groups in the work area, emphasizing benefits and our job rotation program.

Highlighting site’s socially responsible mission to “clean up the number one environmental risk in SC”

Innovations to retain workforce:

Increased PTO/Vacation for >5 year employees by 24 hours

Adopted wellness initiatives that involve sports themes and group activities

Modernized with big screen TVs in facilities and standardized publications so that employees know when announcements (job postings, fundraisers, safety meetings, etc.) are coming up.

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Examples of Workforce Recruitment and Retention

Innovations: Portsmouth

Innovations to attract a new workforce:

Offering Engineering Job Shadowing Day with Ohio State University

Launching a Co-Op program this fall that will operate in Fall and

Spring each year, target is 2-3 people per semester

Increased On Campus recruitment efforts (12-14 per semester)

Innovations to retain workforce:

Increased continuing education assistance from $2,500 to $5,250

Offer PE license reimbursement (and other misc training)

Increased starting wages for recent graduate engineers

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Attracting and Retaining the Workforce of the Future

Heatherly Dukes

President, Technical Services Group

Sept. 13, 2018